Ofgem Removes National Grid's Funding Allowance

U.K. energy regulator Ofgem has decided to remove National Grid PLC's (NG.LN) 277.5 million pound ($357.4 million) funding allowance after the electricity and gas utility said it doesn't expect to incur further expenditure.

Earlier this year, National Grid said it won't need to take an allowance Ofgem had earmarked for network investment. The company said that after reviewing its needs it had volunteered to defer GBP480 million worth of allowances.

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The allowance, known as RIIO-T1, is intended to promote effective services for energy consumers.

At 0805 GMT, National Grid shares were down 1 pence, or 0.1%, at 957 pence, valuing the company at GBP32.76 billion.